JSE-listed Aveng on Monday said its Aveng Africa subsidiary was awaiting the disclosure by the Competition Commission of the penalty to be levied against it, after it had entered into a settlement agreement with the commission.
This followed the launch of a broad investigation in 2009 by the Competition Commission into anticompetitive practices within the construction industry.
Aveng engaged in a “fast-track settlement” with the commission in 2011 and applied for leniency.
“The Competition Commission will make an announcement in due course with regard to its findings and will disclose the quantum of the administrative penalty levied against [the firm],” the group said in a statement on Monday.
The company was unable to disclose the settlement amount until this was authorised by the commission.
ORDER BOOK
Meanwhile, the group reported that its two-year order book had increased to R41.8-billion at the end of April, an increase of 6% compared with the R39.7-billion two-year order book reported at the end of December.
Within the Construction and Engineering: Australasia and Pacific segment, the order book increased by 11% to R27.4-billion and the Construction and Engineering: South Africa and rest of Africa segment order book increased by 9% to R6.3-billion. However, Aveng Mining’s order book declined by 16% to R7-billion.
Aveng stated that following the resolution of two problematic contracts in Australia, as well as the final settlement with the Competition Commission, the financial risk within the group had been substantially reduced.
Nevertheless, it warned that, despite the improved order book, following the award of two large contracts outside South Africa, local trading conditions remained difficult, compounded by a very volatile general labour environment.